NATIXIS - Universal registration document and financial report 2019

RISK FACTORS, RISK MANAGEMENT AND PILLAR III Risk management

The diversification strategy now needs to be taken on board at Group level; Natixis is not the Group’s only strategic arm. The strategy aims to extend the Group’s financing sources by geographic zone, currency, product and counterparty, to limit its stock market footprint while restricting the so-called “market” liquidity needs of consumer business lines. As for Natixis, implementing this strategy will notably involve structured issues made via private placement, as well as deposit taking via corporate bonds in Europe, Asia and the US. The following charts are established for information purposes on the basis of management data at year-end.

Funding principles and structure (Data certified by the Statutory Auditors in accordance with IFRS 7) Funding strategy Natixis’ funding structure relies on a Joint Refinancing Pool shared by Natixis and BPCE. Placed under the authority of the Group ALM Committee, this platform was implemented in order to secure the Group’s financing and optimize the management and allocation of liquidity within the Group in accordance with predefined rules, with the aim of limiting the use of market financing and reducing funding costs.

Weight of gross on-balance sheet funding sources by major category of vehicle and/or by customer segment at the end-2019 reporting date

Weight of gross on-balance sheet funding sources by major category of vehicle and/or by customer segment at the end-2018 reporting date

3

Ǿ Other USD EUR

Ǿ Other USD EUR

2 % 10 %

1 % 9 %

1 %

2 %

3 %

3 %

17 %

11 %

10 %

12 %

1 % 2 % 7 %

1 % 3 % 8 %

19 %

23 %

1 % 2 % 2 %

1 % 2 % 2 %

2 % 4 %

2 % 4 %

9 %

9 %

7 %

9 %

BPCE

BPCE

Other

Other

Credit

Credit

Central

Central

banks

Group

banks

Group

Financial customers

Financial customers

Non-financial customers

institution

Non-financial customers

institution

customers*

customers*

Sources: Management data. Restated following of the disposal of the retail banking activities.

Sources: Management data.

Breakdown of gross funding structure by currency, at current USD exchange rates — 31/12/2019 8 % Other currencies

Breakdown of gross funding structure by currency, at current USD exchange rates — 31/12/2018 7 % Other currencies

48 % EUR

40 % USD

44 % USD

53 % EUR

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019